TSXV:AAA.P - Post by User
Comment by
Karmanowon Nov 29, 2011 5:01pm
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Post# 19276313
Stage 1 + Stage 2
Stage 1 + Stage 2We can take some very large insights from our northern neighbour, South Boulder.
Very interesting that the potash geology is very similar to ours on the western shoreline...how far south does the sylvinite layer go?...If Farhad can secure a deal similar to the Haro Deal...where we only buy it after we prove that a profitable mine resource exists could add value to Allana?...we are currently drilling in the east...one has to wonder if the sylvinite continues south of South Boulder onto the Samarian Block and is as shallow?
South Boulder have released a Scoping Study that contains similar numbers and plans (as indicated in Allana's PEA...)
Ercosplan estimates South Boulder will have: OPEN PITT MINE, $1.33 Billion NPV, $700 m capex costs, 1 m tons per year of MOP, and a STAGE 2 for SOP layer!!A conservative, low risk approach has been adopted by the engineering team led by independent potash consultants ERCOSPLAN; Given that only a small portion of the potash contained within the current JORC Compliant Mineral Resource Estimate (~16%) is included in the current study the Company considers the mine life upside of the project to be immense and 50 years once details of SOP and K-Mg sulphate production is included.
? The engineering study has determined 1Mt p.a. production of standard Muriate of Potash (MOP) from Sylvite mineralisation as the optimised production rate for the first stage of development; This maiden resource represents the first stage of a mining engineering study into the optimum production capacity from open pit mining. The study will investigate a range of production scenarios from 2MT – 10MT p.a. The current potash resource is located from
between 22.20m to 64.80m below surface confirming Colluli as the worlds’ shallowest buried potash deposit. Further, the recent updated JORC shows the upper portion of the deposit and shallowest resource unit contains high grade sylvinite (KCl) of 130.39Mt @ 27.02% KCl for 35.23Mt of contained potash (Measured, Indicated and Inferred resource at Area A and Inferred resource at Area B). All potash is contained within potash minerals that can be processed using standard techniques.
| South Boulder Mines Ltd (ASX: STB) is very pleased to report that Discounted Cash Flow (DCF) financial modeling for the base case Stage 1 open pit mining and processing of the Colluli Potash Deposit has returned highly favourable economics. Pre-production capital (including 15% contingency) | USD 0.74 bn |
| Pre-tax NPV12% (12% Discount rate) | USD 1.33 bn |
| Internal rate of return (IRR) | 40.60% |
| Project revenue | USD 6.03 bn |
| MOP production rate | 1Mt p.a. |
| Mining method | Open pit |
| Study mine life | 17 years |